Operational-Level Agreements Aid In Multisourcing Efforts

As customers have moved to embrace a more selective outsourcing approach, multisourcing techniques are becoming more tangible and less reliant on best efforts and good will. As a result, clients seek mechanisms with which they can manage multiple suppliers more effectively. One of the keys to managing suppliers effectively is to encourage them to work more effectively together, reducing the burden on the client for oversight. One of the principal tools available is the operational-level agreement (OLA), which supports and complements service-level agreements (SLAs). OLAs are agreements between participating suppliers and the client that provide a framework for achieving SLAs where multiple parties are responsible for achieving them. Sophistication in the use of OLAs is evidence of real experience with multisourcing, so sourcing and vendor management professionals should seek it as a selection criterion.